"In the very short term, it's going to be hard for the Federal Reserve to ignore the SVB episode," says Gilles Moec of Axa Investments. “I wouldn't want to be in Jerome Powell's shoes, but I think he himself is aware that a local collapse is better than a systemic one,” says Manuel Romera, from IE Business School. From the fintech Ebury they believe that "a 50 basis point hike by the Fed in March, anticipated last Tuesday, now seems ruled out."
On the other hand, they add, in Europe "it is unlikely that the problems of US banks will derail the ECB's plan for a 50-point hike."
